The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury shifted funds from one of those banks to the Fed?

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• The balance sheet for the bank would reflect a decrease in reserves and a decrease in deposits.
• The balance sheet for the bank would reflect an increase in reserves and an increase in deposits.
• The rise in bank reserves would increase in the quantity of money.
• The decrease in reserves would also appear on the Fed's balance sheet, but would be offset by an increase in the government's account.
• The decline in bank reserves would decrease the quantity of money.
• The increase in reserves would also appear on the Fed's balance sheet, but would be offset by a decrease in the government's account.